What The US Government Spent Its Money On In 2013

Tyler Durden's picture




 

Still living with the misguided idea that the bulk of government spending goes to defense? Wrong. As the just released Treasury refunding presentation shows, for yet another year in a row, the bulk of government outlays was for Medicare and Medicaid, as well as Social Security, both amounting to just shy of $900 billion in 2013, a sizable increase compared to the prior year. Defense spending? It declined once again to just over $600 billion, as did Interest outlays, which net of the Fed's remittances on interest payments, declined from under $500 billion to just about $400 billion in the past year.

The other tiems were largely in line, and far less material to the US government's spending addiction.

So how did the government fund these outlays? Well in addition to net debt issuance of just over $1 trillion in the 2013 fiscal year, the other more traditional sources of funding - tax receipts - were the following:

Notably, while monthly individual income taxes rose on an LTM basis to a record $110 billion as a result of changes to the tax code in early 2013, corporations continue to see their overall income taxes decline as more seek offshore tax shelters, and avoid paying US taxes while building up record cash hoards.

This is also visible on the following chart of Y/Y percentage changes in tax receipts, showing that for the first time in years, corporate taxes are about to decline compared to the previous year.

Ironically, corporations may be people as per the SCOTUS, but people are increasingly corporations, at least for IRS purposes.

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Wed, 11/06/2013 - 10:50 | 4126719 Sudden Debt
Sudden Debt's picture

Where do they put the Area 51 expenses?

Wed, 11/06/2013 - 10:55 | 4126738 BoNeSxxx
BoNeSxxx's picture

So at $85B/month, the Fed is providing the US with free Social Security...

What could go wrong?

Forward Comrades.

Wed, 11/06/2013 - 11:03 | 4126781 Stackers
Stackers's picture

HHS and SSA really should just be one huge "welfare" colunm

Wed, 11/06/2013 - 11:22 | 4126870 tarsubil
tarsubil's picture

Essentially, all Medicare, Medicaid, and Social Security amount to is shuffling huge amounts of money around and taking a cut.

Wed, 11/06/2013 - 11:40 | 4126954 Broccoli
Broccoli's picture

Don't forget the Department of Agriculture does food stamps + farm subsidies and that is most of their budget. Think food stamps are the largest line item.

You can also find some form of welfare in every department so yea.....

Wed, 11/06/2013 - 11:48 | 4126986 Fredo Corleone
Fredo Corleone's picture

Correction:

"What The US Government Spent OUR Money On In 2013"

 

Wed, 11/06/2013 - 23:47 | 4129672 cornedmutton
cornedmutton's picture

It says Federal Reserve Note, not Fredo Corleone Note. (it's someone's money...not yours though)

Wed, 11/06/2013 - 10:56 | 4126748 EscapeKey
EscapeKey's picture

Krugman's aliens paid for that back in 2281.

Wed, 11/06/2013 - 10:58 | 4126755 Mi Naem
Mi Naem's picture

"Where do they put the Area 51 expenses?"

Bureau of Birth Certificates

Wed, 11/06/2013 - 11:23 | 4126880 James-Morrison
James-Morrison's picture

Is that where Obama's is?

Wed, 11/06/2013 - 13:33 | 4127458 jerry_theking_lawler
jerry_theking_lawler's picture

Exclude all items not originally granted in the Constitution and guess what......we would have the richest citizens in the world....ahhhh, progress.

Wed, 11/06/2013 - 13:48 | 4127544 Crash Overide
Crash Overide's picture

So they spend all the money on sick people and wars...

Wed, 11/06/2013 - 10:57 | 4126727 LawsofPhysics
LawsofPhysics's picture

I see that the capital and resource mis-allocation and mal-investment continues.  (And this does not even include the off-balance sheet expenses at the CIA and pentagon)

hedge accordingly.

Wed, 11/06/2013 - 11:02 | 4126778 Anusocracy
Anusocracy's picture

As far as I'm concerned, all the categories should be zero.

Sell the one million square miles of America that the US government owns and buy out as many SS entitlements as possible.

Wed, 11/06/2013 - 11:20 | 4126865 LawsofPhysics
LawsofPhysics's picture

So long as you are selling it for something fucking real and taking possession of that asset, go for it.

Wed, 11/06/2013 - 12:53 | 4126864 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

The black budgets are baked into the overall DOD budget. The true off balance sheet stuff well if the SEC ever actually did it's job......... But in fairness that is true 'off the books' income.

Wed, 11/06/2013 - 10:55 | 4126733 Confused
Confused's picture

Still living with the misguided idea that the bulk of government spending goes to defense? Wrong.

 

Let me get this straight....we don't believe any .gov statistics that get released, but we actually believe that they report the correct amounts for defense spending? 

Oh, right, those are black budget items, hidden from even the people in power. 

 

Regardless, government spending is theft.

Wed, 11/06/2013 - 10:59 | 4126758 butchee
butchee's picture

What is your best estimate for the black budget items since 2000? 5T, or more?

Wed, 11/06/2013 - 11:09 | 4126805 duo
duo's picture

The US is a PPO/HMO that happens to have a military.

Wed, 11/06/2013 - 11:12 | 4126821 Carl Popper
Carl Popper's picture

Well said

Wed, 11/06/2013 - 11:14 | 4126810 Anusocracy
Anusocracy's picture

I would make the argument that Defense is the most destructive and unnecessary spending. Defense also is the mainstay of government.

'Defense' is 90% Offense. Same as the police.

Wed, 11/06/2013 - 11:29 | 4126901 MachoMan
MachoMan's picture

Unless you want a reserve currency...  which pays for the rest of the bills...

Wed, 11/06/2013 - 11:49 | 4126991 Wyatt Junker
Wyatt Junker's picture

Actually, no.  The most destructive spending are medicaid/care and SS since they are entitelments which the polis use to bribe dumbshits with, turning them into dependent whining asshole layabouts which decimates real productivity.  Its almost like have a national defense aimed at our GDP.

As far as 'defense' spending goes, its too high, but at least its the only Constitutionally legal spending authorized by the Federal Fuck Wipes.

Police?  Well, they just want a pension, a gun and a jelly donut, in that order.

Wed, 11/06/2013 - 13:22 | 4127415 pods
pods's picture

The Navy is Constitutional, the Army was specifically not authorized (standing army).  Marines same as the army. The Air force, well they didn't have flying machines back then, but we didnt give the government authority by an amendment so no, that one isn't constitutional either.

pods

Wed, 11/06/2013 - 15:12 | 4127921 balanced
balanced's picture

I agree that SS is bullshit wealth confiscation, and that the people should be left alone to invest their money as they see fit. I know that it's a ponsi scheme which is unsustainable. That being said, when I see people make comments like yours in which you refer to SS as an entitlement, I wonder... Do you acknowledge the fact that most people receiving SS benefits now have paid into that system for decades? Does anyone know the average payout vs. the average pay-in for Social Security? I just can't imagine that many people are getting back much more than the amount that they paid in plus the interest they'd have earned. When I was a kid, for a while there you could get a savings account that accrued 10% interest 10%!

This is an honest question.

Thu, 11/07/2013 - 03:46 | 4129974 Confused
Confused's picture

Is it an entitlement if you've paid in? 

 

</sarc>

Wed, 11/06/2013 - 15:19 | 4127946 Anusocracy
Anusocracy's picture

I'm not sure where the Constitution calls for naval bases all over the world. And of course, the MIC is a huge benefit for those outside the MIC. No 'entitlements' there.

Wed, 11/06/2013 - 11:30 | 4126908 GeorgeHayduke
GeorgeHayduke's picture

Good point. Nobody believes government stats UNLESS they support their ideological viewpoint.

Wed, 11/06/2013 - 12:07 | 4127067 Clycntct
Clycntct's picture

Good point and wake up.

We only believe the BS we like.

Wed, 11/06/2013 - 14:27 | 4127730 zanez
zanez's picture

VA and civil defense should be added in as well. why would taking care of injured / retired soldiers not be part of defense costs?

Wed, 11/06/2013 - 10:55 | 4126743 EscapeKey
EscapeKey's picture

I was under the belief that a large amount of health+social services cost was for active and retired personnel?

 

Wed, 11/06/2013 - 11:03 | 4126782 Chaos_Theory
Chaos_Theory's picture

Retired = VA

Active = Operations and Maintenance budget within the Defense budget. 

Suppose it would be appropriate to add the VA lines to the DoD ones for an honest accounting.  BTW, what the heck is "Other Defensive-Civil?"  Is that DHS and their 2 billion HP rounds and MRAPs? 

Wed, 11/06/2013 - 11:26 | 4126889 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

They play games also with shifting the liabilities around. It is a typical accounting trick. Pensions for veterans are not under the DOD budget but hidden in the Post Office operating budget as pension liabilities. They classify it as a general civil service thing to shift numbers around on the books.

Wed, 11/06/2013 - 12:40 | 4127222 dark_matter
dark_matter's picture

A lot of active military and vets receive food stamps and other .gov benefits, another hidden military cost.

Wed, 11/06/2013 - 10:56 | 4126746 Dr. Engali
Dr. Engali's picture

OPM? Isn't it all other people's money? I guess this is the porn and hookers fund.

Wed, 11/06/2013 - 12:12 | 4127088 Agent P
Agent P's picture

and Obamaphones

Wed, 11/06/2013 - 11:00 | 4126753 JustObserving
JustObserving's picture

Defense spending? It declined once again to just over $600 billion

Since when did you start believeing government figures?  The real defense budget is nearly twice the official figure.  2013  defense spending is about a trillion ($994.3 billion) not $600 billion:

The Real Defense Budget

 

While everyone knows that the defense budget is large -- even in the numbers that the public sees as the formally admitted figures by the Department of Defense -- the truth is that when one scratches beneath the bureaucratic veneer, national security spending is much larger, nearly double the amount US citizens are told.

A Republican, numbers-compulsive defense wonk at the Center for Defense Information, Winslow Wheeler, has published a great summary of what America's defense budget 'really' is. 

http://www.theatlantic.com/politics/archive/2012/02/the-real-defense-budget/253327/

 

Wed, 11/06/2013 - 11:03 | 4126783 rationaldemocracy
rationaldemocracy's picture

Who was the last president before Obama to cut defense spending?

Wed, 11/06/2013 - 11:23 | 4126882 RSloane
RSloane's picture

Who was the last president before Obama who threatened to bomb another country based on youtube vids?

Wed, 11/06/2013 - 11:55 | 4127012 Buckaroo Banzai
Buckaroo Banzai's picture

Who was the last president before Obama who sucked a cock?

Wed, 11/06/2013 - 11:01 | 4126769 Taffy Lewis
Taffy Lewis's picture

I remember Ron Paul saying in an interview, to paraphrase: "I'll cut a half trillion on the left (extending his arm out with palm open to his left) and I'll cut a half trillion on the right (extending his arm out with palm open to his right). There, problem solved."

Way too much common sense and why I will never vote again and why I am withdrawing from society and not participating as much as I possibly can. As most of this country is going down the toilet, I am standing safely to the side and waving down as it gets flushed. Fuck the oligarchy, fuck the Free Shit Army.

Wed, 11/06/2013 - 11:05 | 4126790 rationaldemocracy
rationaldemocracy's picture

would the free shit army be the 50 millions Americans who struggle to feed themselves ? You should donate your heart to ron paul when he has the inevitable heart attack - I am sure the donor match will be perfect.

Wed, 11/06/2013 - 11:17 | 4126849 Carl Popper
Carl Popper's picture

There is no struggle. Food stamps and HUD and SSI ensure that they arent motivated to push an ice cream cart or engage in some other value added efforts.

Necesity and the desire to ward off hunger are the mothers of invention

Wed, 11/06/2013 - 11:29 | 4126902 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

There is a fine line between charity and dependency. Giving one time in need is charity especially when you don't expect anything in return for it, giving over and over without other actions to lift an individual up creates dependency. Feeding the poor is a charitable thing when you have excess but you also need to provide a pathway and resources for them to be able to lift themselves up when they are down at the same time.

Wed, 11/06/2013 - 11:54 | 4127010 Wyatt Junker
Wyatt Junker's picture

I'd have more peace at night knowing that the mountain of taxes I pay were doused in lighter fluid and set afire rather than stolen the way they are and used to buy votes (mostly) by one political party to create permanent wards of the state.

Its almost like my taxes are stolen to help elect Harry, Nancy and Barry.

Wed, 11/06/2013 - 13:09 | 4127111 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Stop paying taxes or cheat them for every last penny. Starve the beast. Once the misallocation stops then you give consent by participating. Vote with your wallet also.

Wed, 11/06/2013 - 18:33 | 4128560 Zymurguy
Zymurguy's picture

Great idea... let me know when you get that witholding law changed, mmmmkay?

Wed, 11/06/2013 - 11:38 | 4126941 PT
PT's picture

Hunger is notoriously unreliable at providing capital and innovation.  Sometimes it does, most times it doesn't.

Wed, 11/06/2013 - 12:02 | 4127034 Carl Popper
Carl Popper's picture

It will provide labor. Labor can build capital thru sweat equity.

I am tired of seeing lazy waddling fat fucks pull out their EBT card at walmart.

A little hunger would slim them down and get them healthy enough to work.

Wed, 11/06/2013 - 13:30 | 4127449 Watauga
Watauga's picture

When's your 14th birthday?

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